Writing a business plan can be a difficult task, particularly for a small business owner who has not written one before. Taking the time to do an outline of the plan before you start makes the process easier, saves time and helps you avoid frustration. Think of the plan as a blueprint for building a company and the outline as the blueprint for creating the plan.
Find a Basic Format
Books on business planning usually have outlines of plans. Online sources such as the Small Business Administration website also have outlines that a business owner can use as a starting point when writing a plan. Business plans have elements in common no matter what industry the company operates in. The plan describes a company's products or services, the target markets, the competition, the marketing plan -- how the company intends to sell its products or services -- and the management team and staff levels. A plan also includes projections of the company's revenues and profits.
Customize the Outline
The type of business you are in will shape both the outline and the emphasis of your plan. A plan for a technology company would emphasize certain sections that a plan for a restaurant for example would not. The technology plan would have a detailed explanation of how the technology works and how the intended customers would use it. The plan must make the case that the target market has a pressing need for the solution the technology provides. The restaurant plan would provide details about the design of the establishment, including the décor and ambiance. The plan must prove there are enough potential customers to ensure profitability in light of the competitive restaurants nearby. A plan intended for strictly internal use would have a detailed section on the specific tactics to be used to implement the marketing strategies. A plan to be presented to potential investors would not need that much detail on marketing tactics but would have a section on how much capital is being sought and how it will be used.
Create Questions for Each Section
A good way to get the plan-writing process rolling is to write down the questions that must be answered to complete each section. This breaks the large plan into smaller writing tasks. You can jot down the answers in bullet-point form and then build them into paragraphs later. In the Competition section, for example, questions would include: Who are your chief competitors? How are their products/services positioned? What are the strengths and weaknesses of each one? How will the competitive environment change over the next three to five years? As you answer each question, you will gain confidence that you will be able to complete the plan.
Determine the Reference Material You Need
In one section of the plan you will describe why you think there is a large potential market for what you are offering. Determine the statistical information you need to back up this assertion and incorporate that in the outline so you remember to gather the information prior to writing the plan. In the Management section, you would summarize the background and accomplishments of key people in the company, so you would need each person to provide a resume for you to work from. Business plans often have an Appendix section with supplementary material such as testimonials from customers. Think about what you might want to include so the reader of the plan gains a thorough understanding of your company and its prospects for the future.
- Jupiterimages/Photos.com/Getty Images